According to Bloomberg, investors are starting to make bets that the record number of auto sales – and by extension growing number of auto loans of any quality, though subprime is the primary concern here – is creating an unsustainable credit bubble similar to the housing market in 2007. The problem is that the two aren’t really comparable and for reasons both academic and practical, the idea of a subprime auto loan bubble and a “Big Short” trade against it doesn’t add up.

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